Labrador Gold wraps up sum­mer ex­plo­ration at Hopedale

Com­pany ex­pects ex­cit­ing re­sults from sam­ples taken in July and Au­gust: CEO

The Aurora (Labrador City) - - Front Page - BY THOM BARKER

Labrador Gold has wrapped up the first phase of de­tailed ex­plo­ration for its Hopedale project and is op­ti­mistic about the gold de­posits in the Florence Lake green­stone belt.

“What we saw out there was cer­tainly en­cour­ag­ing,” Roger Moss, Labrador Gold CEO, told The Labrado­rian. “Over­all, I’m pretty op­ti­mistic we’ll come up with some good re­sults.”

In a press re­lease is­sued last week, the com­pany de­tailed its sum­mer pro­gram of soil sam­pling, rock sam­pling, ge­o­log­i­cal map­ping and prospect­ing not­ing a par­tic­u­larly promis­ing area known as the Thurber Dog gold show­ings.

Pre­lim­i­nary re­sults from fall field work in 2017 on Thurber Dog sam­ples in­di­cated con­cen­tra­tions of up to 7.87 grams per tonne (g/t) of gold in the area. The World Gold Coun­cil de­fines a high grade gold oc­cur­rence as 8 to 10 g/t.

The com­pany has an­other round of field work sched­uled for Septem­ber.

Mar­jorie Flow­ers, the mayor of Hopedale, is cau­tiously op­ti­mistic about the long-term prospects for eco­nomic de­vel­op­ment.

“(The com­pany) did come and have one meet­ing,” she said. “They are hop­ing to turn it into a mine, but it’s re­ally go­ing to be based on the re­sults of their find­ings.”

The com­pany has not yet seen re­sults from nearly 8,000 soil sam­ples and some 300 rock sam­ples taken in July and Au­gust, Moss said.

Aside from the 2017 sam­pling re­sults, there is cause for op­ti­mism.

“It’s a fairly unique sit­u­a­tion, in that the rocks we’re look­ing at there, ba­si­cally com­prise a green­stone belt; else­where in the world, green­stone belts are usu­ally quite pro­lific hosts of gold min­er­al­iza­tion,” Moss said.

That, he said, makes it eas­ier to ex­plain the po­ten­tial of the project to in­vestors and other stake­hold­ers and why the com­pany is cur­rently fo­cussed on Hopedale rather than its other prop­er­ties near Nain and Ashu­na­nipi (north of Labrador City near the Que­bec bor­der), which are more ge­o­log­i­cally com­pli­cated.

Mean­while, even in the ex­plo­ration phase, Hopedale is see­ing some eco­nomic ben­e­fit in the form of lo­cal em­ploy­ment and sourc­ing of goods and ser­vices.

Flow­ers said the com­pany hired a cook and cook’s as­sis­tants as well as field as­sis­tants from the town for this sum­mer’s work.

“Any­thing that brings money into the town, I think is a pos­i­tive ex­pe­ri­ence for a town that re­ally has very lit­tle re­sources eco­nom­i­cally,” she said.

Not ev­ery­one agrees it is pos­i­tive. The mayor noted that at­ti­tudes to­ward Labrador Gold’s pres­ence are mixed.

“Some peo­ple say it’s good, some peo­ple say it’s not,” she said.

Moss said the com­pany’s lo­cal sourc­ing ex­tends eco­nomic ben­e­fits to Labrador in gen­eral as they are us­ing Air Bo­re­alis and Universal He­li­copters out of Happy Val­ley-Goose Bay.

He is also en­cour­aged by Labrador Gold’s en­gage­ment with the Nu­natsi­avut govern­ment as the Hopedale prop­erty lies within the Inuit Land Claims Set­tle­ment area.

“We have a pretty close re­la­tion­ship with them,” he said. “All in all, it seems like they’re pretty happy with what we’re do­ing.”

Gold prices have been de­clin­ing through­out 2018 and Labrador Gold’s stock price has taken a bit of a hit, but Moss says is not wor­ried about that.

“The gold price has gone down a bit and gold com­pa­nies gen­er­ally haven’t been do­ing too well, but in that kind of en­vi­ron­ment, I think our stock price is hold­ing up pretty good,” he said. “And I think when we get our re­sults back, we should have some re­sults that will gen­er­ate some ex­cite­ment.”

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